US-China Trade Falls 11% in Early 2026 Despite 47% Busan Truce Tariffs
Updated
Updated · WION · May 12
US-China Trade Falls 11% in Early 2026 Despite 47% Busan Truce Tariffs
4 articles · Updated · WION · May 12
Early-2026 US-China bilateral trade dropped 11% from a year earlier, showing the Busan truce has not reversed the downturn in cross-border commerce.
Most tariffs still remain in force: the October 2025 Busan deal cut US duties on Chinese imports to 47% from 57%, after Trump had imposed a blanket 145% tariff and China retaliated with 125% tariffs.
The latest slump extends a trade conflict that began in 2018, survived the 2020 Phase One deal, and broadened under Biden into tighter semiconductor and other strategic restrictions.
Trade patterns had already been shifting before the truce, with the US-China deficit shrinking as supply chains rerouted through countries such as Mexico and Vietnam.
As the fragile 'Busan Truce' falters, what does a sustainable US-China economic relationship actually look like?
How are other nations navigating a global economy being reshaped by the US-China trade and tech rivalry?
Is the US widening its tech lead, or just accelerating China's push for technological self-sufficiency?
U.S.-China Trade at a Crossroads: Rare Earths, Soybeans, and the November 2026 Busan Truce Deadline
Overview
The global trade landscape in 2026 is shaped by China's strong export and import growth, driven by high demand for semiconductors and the global AI investment boom. This momentum comes despite earlier declines in trade with the Middle East and the impact of high U.S. tariffs in 2025, which pushed Chinese exporters to seek new markets like South America. These shifts highlight how economic pressures, strategic competition over technology, and geopolitical tensions are prompting both China and the U.S. to adapt their trade strategies, diversify supply chains, and seek new partnerships to maintain stability amid ongoing uncertainty.